[Congressional Record Volume 144, Number 95 (Thursday, July 16, 1998)]
[Senate]
[Pages S8273-S8274]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           CBO MIDYEAR REVIEW

  Mr. DOMENICI. Mr. President, yesterday the Congressional Budget 
Office released its annual midyear review. I believe every Senator 
should acquaint himself with it. This CBO analysis speaks volumes about 
the success that the Republican-led Congress has had in putting the 
Federal Government's fiscal house in order--because policies aimed at 
reducing Federal spending, stimulating economic growth, coupled with 
the passage of the Balanced Budget Act last year have produced 
remarkable results.
  The Congressional Budget Office, which is our official scorekeeper 
and economic analysis group, now projects that there will be a Federal 
budget surplus of $1.6 trillion over the next 10 years. Let me repeat, 
the Congressional Budget Office now projects a Federal budget surplus 
of $1.6 trillion over the next 10 years. This is up significantly from 
the $650 billion, 10-year number they gave us in January.
  The Budget Office forecasts surpluses of $63 billion for this year; 
but they tell us that surplus will grow, rising to $80 billion in 1999; 
$251 billion in 2008. The Congressional Budget Office estimates that 
the total accumulated surplus--I repeat --during the next 10 years will 
be a whopping $1.6 trillion.
  More importantly, the Budget Office projects that in the second 5 
years, from 2003 to 2008, we will produce a $168 billion operating 
budget surplus. That means a surplus, excluding the money borrowed from 
Social Security.
  For those who said they wonder when the day will ever come when we 
will have a balanced budget, having returned to the Social Security 
trust fund whatever was used in the general funding of this Nation, the 
Congressional Budget Office says that day will arrive in the year 2003. 
And it will produce a very genuine and solid $40 billion a year, more 
or less, in a genuine surplus on budget, taking into consideration the 
Social Security trust fund in its entirety.

  In other words, under the leadership of this Congress, we have moved 
from Federal budgets that produced deficits for as far as the eye can 
see to budgets that project surpluses for as far as the eye can see. I 
believe we must now

[[Page S8274]]

move to protect this surplus from those who would use it to expand 
Government. Rather, our first priority must be to protect and preserve 
the fiscal integrity of Social Security for the future.
  We are committed to that goal. But we are also committed to providing 
needed tax relief to our hard-working families. We now know that we 
will have an operating surplus, roughly $40 billion a year, beginning 
in the year 2005. Therefore, I believe we must see to it that this 
surplus is available for tax cuts for the American people and that we 
not spend this money to grow Government. Let us spend this money to 
grow the paychecks of Americans.
  Mr. President, there will be a lot of talk about this Congressional 
Budget Office's re-estimating of our national fiscal policy. I commend 
it to those who are concerned, legitimately concerned, about where we 
ought to go in the future based upon our successes.
  I also would like Senators to know that the Congressional Budget 
Office did not assume a robust, strong, growing economy for the entire 
next 10 years. They have taken into consideration the potential, 
although we hope it will not occur, of a downturn in the economy, and 
we still have these kinds of surpluses--indicating that the economy is 
vibrant, productive, that the increases in productivity are far greater 
than we have estimated in the past, tax revenues are growing faster 
than we estimated in the past.
  Clearly, an opportunity now is before us to make sure Social Security 
is taken care of and also to look carefully and surely right in the eye 
of, Should we give tax cuts to the American people? I think the answer 
is going to be a resounding yes.
  I yield the floor.
  Mr. WELLSTONE addressed the Chair.
  The ACTING PRESIDENT pro tempore. The Senator from Minnesota.
  Mr. WELLSTONE. I ask unanimous consent that I be able to speak 
briefly as if in morning business, and then go right to this amendment.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. WELLSTONE. Thank you, Mr. President, and I thank my colleagues 
for their courtesy. I will definitely speak to the amendment in a 
moment.

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